Investors are closely watching what Terra’s fall may mean for other stablecoins, which play an important role in the crypto ecosystem and account for about 13% of the crypto market’s capitalization.
It’s the third day since TerraUSD, an algorithmic stablecoin designed to trade 1 to 1 against U.S. dollars, fell off its peg for an extended period of time.
Some crypto industry participants said it is a “dark day” for the whole sector, as one of the most popular blockchains to grow at a breakneck speed, saw the value of its coins nearly collapse. Explained: What is an algorithmic stablecoin? Why is Terra in the news? Here’s what investors need to know. In fact, some traders think UST’s fall will boost demand for other stablecoins in the short term, as investors move funds from UST to its counterparts. “There’s around $10 billion if not more of capital from UST looking for safer stablecoins to park in,” Matt Maximo, research analyst at Grayscale wrote to MarketWatch in an email.
“Of course, regulation in the long-term is net positive for the crypto space but if stablecoin issuers get regulated as strictly as banks, it could suffocate one of the most innovative, thriving, and important sectors of the crypto market,” Anto Paroian, chief operating officer at crypto hedge fund ARK36 wrote to MarketWatch in emailed comments.Winners, losers? UST’s fall also intensified the divergence of views on different kinds of stablecoins.
Norge Siste Nytt, Norge Overskrifter
Similar News:Du kan også lese nyheter som ligner på denne som vi har samlet inn fra andre nyhetskilder.
43% of Investors Say They're Too Nervous to Get Into Markets Right Now. Here's Why They Should Invest AnywaySome 43% of investors they’re too nervous to invest in the market right now, according to an online survey of more than 1,000 adults conducted in March.
Les mer »
Yellen says run on UST stablecoin illustrates crypto's risk to financial stabilityTreasury Secretary Janet Yellen pointed to a recent run on the stablecoin TerraUSD as evidence of the potential threat to financial stability posed by unregulated cryptocurrency markets during a Senate Banking Committee hearing Tuesday.
Les mer »
Stablecoin Terra falls as low as 30 cents on the dollarThe so-called stablecoin TerraUSD fell as low as 30 cents on the dollar, demonstrating in real-time the difficulties the cryptocurrency community will have...
Les mer »
Luna price collapses below $5 as UST slides further from dollar pegThe prices of Luna (LUNA) and its related stablecoin TerraUSD (UST) are in freefall, straining the entire project.
Les mer »
Stablecoin Terra's broken dollar peg hits wider crypto marketsTerraUSD, the world's fourth-largest stablecoin, lost a third of its value on Tuesday, spooking cryptocurrency investors and partly contributing to bitcoin's tumble below $30,000 for the first time in 10 months.
Les mer »
Bitcoin Investors Are Panicking as a Controversial Crypto Experiment UnravelsInvestors in bitcoin are in panic mode as the controversial terraUSD stablecoin slips further from its intended $1 peg.
Les mer »